*from Van Hoisington and Lacy H. Hunt. A must read on why we will not have an inflation problem for years to come because deflation rues the day. I have been ranting about this for a year. Maybe now you will all believe me after you read this. But I am advocating Deflation. Consumers in america and likely worldwide, need to restructure their debt load in order to absorb the never to return again home prices of the past decade. Wipe the slate clean either through bankruptcy for us all, or let consumers do what banks have been allowed to do: My debt is only worth .25 on the dollar today so my debt payments should go down. Until such time that things have turned around and my debt can go back up. Simple right? Mark to market suspension of accounting rules should be applied to us all. Otherwise all will be lost down the money pit of the good ole soon to be bad ole USofA!
Hoisington Investment Management Company 2009 Quarterly Review
Second Quarter 2009